International Goldfields Limited is pleased to announce initial assay results from ongoing diamond drilling by the Ouro Paz Joint Venture in Brazil. Over 2,500m of diamond drilling is completed in 20 holes testing six prospects (União, Carrapato, Morro do Carrapato, Jeová, PF Vein Zone, and Ana South) within the Union Project area. Assay results recently received for the first eleven holes totalling 1,263m drilling from four of the six prospects. Encouraging assay results are located at the initial drill test of the Morro do Carrapato Prospect, with additional down-dip drilling complete and pending assay.

Morro do Carrapato is an outcropping quartz ridge analogous in appearance and geological setting to the PF Quartz Vein outcrop and is host to several >5g/t Au rock chip samples. Morro do Carrapato is situated at the intersection of the northeast trending Jeová prospect veining and the northwest trending mineralised shear zone that also hosts mineralisation at the PF Vein Prospect one kilometre to the southeast.

Holes MOC 001 through 004 at Morro Carrapato are drilled on 50m spacing along strike with better results in MOC 002 returning 5.77m at 16.5g/t Au from 40.55m depth, including 1m at 85.6g/t Au (See photo below of core sample from MOC 002) and MOC 001 returning 6.15m at 1.065g/t Au, including 1.25m averaging 1.84g/t Au from 31.9m depth 50m to the northwest, and MOC 003 returning 2.45m at 2.44g/t Au from 25m depth and mineralisation open to the southeast. Managing director Travis Schwertfeger described the latest diamond drilling results as extremely encouraging.

“These initial results suggest there is strong potential for multiple zones of high grade gold mineralisation to be hosted at the Union project. With just over half the diamond drilling campaign now completed, we are encouraged and eagerly await the next round of diamond drilling results to assess the potential of the project.” Diamond holes CAR 001 through CAR 003 are part of an initial drill test of the Carrapotto Prospect, the northwest extension of Morro do Carrapato.

The assay results for these holes demonstrate down-dip potential of the near-surface workings and continuity of the extensive mineralised corridor that is the focus of additional exploration work. Diamond holes LZG 001 through LZG 003 are the first three of five holes to test 300m of strike to the west of the drilled mineralisation of the União Prospect on 50m spacing. Hole LZG 003 returned 4.25m at 2.58g/t Au from 34.55m depth, including 1.1m at 7.56g/t Au demonstrating potential to significantly extend the existing footprint of the mineralised zone.

Updated Resource estimation of the current foreign resource estimate to JORC compliant standards for the União Prospect and a maiden resource for the PF Vein Prospect is planned for August 2013 following completion of the current drill program. Geological modelling has commenced on the Ana Prospect, with results of density measurements for tonnage calculations recently received. Samples for preliminary metallurgical assessment for Ana Prospect are being prepared for shipment.

Union Project Summary

The consolidated Union project area is host to the União, Ana, and numerous other prospects where exploration is defining epithermal style high-grade gold mineralisation hosted in quartz-veining and disseminated sulphides associated with shearing. The Union project includes the 2.5km by 4.5km surface geochemistry gold anomaly defined in 2012. The União Prospect is located 2.6km west-northwest of the high-grade shoot of the PF Quartz Vein of the Ana Prospect. Mineralisation previously drilled at the União Prospect lies on the projection of mineralised shearing associated with the PF Quartz Vein Zone with multiple un-drilled targets defined between the two zones of confirmed mineralisation.

Conselheiro initiated drilling on behalf of the Joint Venture in February this year. Exploration activity has recently increased to three diamond drill rigs on site to test priority targets across the full extent of the consolidated Union Project area with a 5,000m diamond drill program expected to complete by July. The Joint Venture has also commenced several trenches with mapping and channel sampling to better delineate the surface expression of the mineralization.

Transaction Overview

IGS’ 93% owned subsidiary, Latin Gold Ltd has finalised a Joint Venture Agreement with Brazil domiciled Conselheiro, a 100% owned subsidiary of Biogold Investment Fund, a party to the Memorandum of Understanding to form a joint venture disclosed 7 February 2013. The Final Agreement includes several parties related to Biogold, whereby each entity will contribute their respective land holdings located in the south eastern extent of the Juruena belt in Brazil into the private Brazil based entity Ouro Paz. The combined landholding will form an incorporated Joint Venture between Latin Gold holding a 35% interest and Conselheiro a 65% interest.

Conselheiro and other Biogold subsidiaries will contribute 21 tenements to the joint venture and provide JV management. Biogold and Conselheiro have already initiated transfer of 3 tenements adjacent to the Ana Prospect comprising the União Project that is host to drilled gold mineralisation into Ouro Paz, and an additional 224km2 of applications for 18 exploration licences that are adjacent to, or complimentary with, the Latin Gold Project tenure that will be transferred to Ouro Paz following grant of the mineral rights. Amazongold has initiated transfer of 29 granted tenements totalling 2,285km2 in exchange for a 35% ownership in Ouro Paz. Amazongold also holds 6 applications for exploration licences totalling approximately 300km2 to be transferred to Ouro Paz following grant of the mineral rights.